London mayor Sadiq Khan has launched a new leasehold advice portal, and has condemned the taxpayer-funded Leasehold Advisory Service as “unfit for purpose”.

He also backed “wholesale reform of leasehold, including a long-term shift toward alternative tenures such as commonhold”.

Today’s statement from the mayor’s office reads:

“Government funds the Leasehold Advisory Service (LEASE) – an advice service for leaseholders in England and Wales – but the Mayor believes ministers have so far failed to ensure it is fit for purpose for a growing sector.

“The Mayor’s guide [to leasehold] acts as an alternative starting point for Londoners seeking information about leasehold, and directs users to seek further, more detailed advice from legal professionals and organisations specialising in housing and leasehold advice where necessary.”

The portal references the Leasehold Knowledge Partnership, a registered charity, running the All Party Parliamentary Group (APPG) on leasehold and commonhold reform and which “provides support and advocacy for those experiencing issues with the leasehold tenure”.

The mayor called on ministers to overhaul the system of leasehold for homebuyers in the capital.

An estimated third of London’s homes – and over 90 per cent of new-build housing – are owned on a leasehold basis, with many leaseholders finding it a complex and confusing form of homeownership.

The Mayor has called for wholesale reform of leasehold, including a long-term shift toward alternative tenures such as commonhold.

James Murray, Deputy Mayor for Housing and Residential Development, said: “For too many Londoners being a leaseholder is a complex and confusing legal minefield.

“Beyond the financial commitments, the option of extending a lease or buying a freehold can present real legal and financial challenges for anyone who is not well versed in property law. The Mayor’s new online guide will give London’s leaseholders the basic knowledge they need to understand their rights, and will help them know what to do if they think those rights are being abused.

“The Government has so shown no real ambition to overhaul leasehold, nor to help existing leaseholders with the challenges they face. That’s why the Mayor is urging Government to prioritise legislation to help both new and existing leaseholders, and in the meanwhile we are doing all we can to help leaseholders in the capital with advice and guidance on their rights.”

A recent study by the National Association of Estate Agents found that 94 per cent of leaseholders regretted buying leasehold properties, and 65 per cent would welcome additional information on their rights and responsibilities (National Leaseholder Survey, 2016).

The Mayor believes it is essential that homebuyers are better informed about the obligations and risks involved in purchasing a leasehold property.

The Leasehold Knowledge Partnership applauds the mayor taking the initiative in the face of government inaction.

Sebastian O’Kelly, LKP chief executive, said:

“None of the reforms by government or the Law Commission owe anything at all to the actions of the Leasehold Advisory Service, which should cease to be the monopoly taxpayer-funded advisory body.

“It has sucked up to the vested interests in this sector for years, holding conferences – usually chaired by sector stooges – to further the commercial interests of developers and freehold owners.

“It is an expensive irrelevance, used by government as an excuse for inaction.”

The Leasehold Advisory Service was mauled by the Communities Select Committee last month, which reported that many leaseholders had reported it as “appalling”:

Contact LKP

The leasehold game is weighted against ordinary home-owning leaseholders, who aren’t professional players. LKP was set up to redress the balance, to help you win your disputes or at least avoid disasters.

If you have a leasehold problem, you can email sok@leaseholdknowledge or take a chance on calling 07808 328 230.

Comments

So we now know The London Mayor Mr Sadiq Khan has launched another new leasehold advice portal, whilst us as tax payers still fund the Leasehold Advisory Service (LEASE ) which has been found Not Fit For Purpose, for many years.

Mr Khan has also backed wholesale reform of leasehold, well done Sir, we support you and will provide help if required.

Not so well done Sir? Not if Transport for London(Mr Khan is a board member) continue their plans to build leasehold properties on TFL owned land and use profits derived from the income leasehold generates to invest in TFL services. Currently TFL is running a near £1billion deficit..

Taking a break from the follies of the world – the Brexit he disapproves of and the muted idea that he become prime minister of a national government – the Tory veteran Ken Clarke has noted that things are not good in the world of leasehold. In correspondence to Susan Hunt, a former LKP accredited […]

Ground rent scandals

Gleeson, the housebuilder that publicly disapproved of rip-off leasehold houses, was identified in the Commons on Tuesday for introducing a raft of “fleasehold” covenants into its freehold ones. Justin Madders, Labour MP for Ellesmere Port and Neston, who is deputy chair of the APPG on leasehold reform, spoke out about how “rancid the whole business” […]

(Not to be reproduced without acknowledgement of the Leasehold Knowledge Partnership) Last year new build leasehold houses worth £1.9 billion were sold in England and Wales, according to data on the Land Registry. Since 2010 the number of new-build leasehold houses has doubled, while the total value of new-build leasehold houses has trebled. […]

Sir Peter Bottomley yesterday laid down an Early Day Motion calling on the Commons to condemn the leasehold houses and ground rent rackets. He called on Taylor Wimpey, Persimmon, Bellway and Adriatic Land companies to “restore all affected leaseholders to a position of fair, affordable enjoyment of their home by assistance to own that freehold […]

Grenfell cladding

The disaster of flammable cladding on blocks of flats and what to do about it is providing the biggest push to transform leasehold law since the eruption of the doubling ground rent scandal which we exposed in 2016. The question being asked is: what is the third-party freehold owning landlord actually for? For ground rent […]

We are all waiting for Sajid Javid The All Party Parliamentary Group on leasehold and commonhold reform met on December 6 at Westminster. Overshadowing all was the conclusion of Communities Secretary Sajid Javid’s report on “Tackling unfair practices in the leasehold market”: the review that he announced in the summer, that concluded in September, into […]

When leaseholders unite …

The APPG on leasehold and commonhold reform has asked two specialist barristers to provide formal opinions on the RTA SI which came into force on 1st November 2018. “The Tenants’ Associations (Provisions Relating to Recognition and Provision of Information) (England) Regulations 2018” The first opinion was provided by barrister Rebecca Cattermole of Tanfield Chambers. Miss […]

Disgraceful …

Sir Peter Bottomley has urged the Commons to intervene in the auction sale of Flat 1 Blythe Court, where the freeholders and managers are Martin Paine and his wife Anne Kirmond. Flat 1 Blythe Court is up for auction with Barnard Marcus on February 2 in central London with a guide price of £65,000. Sir […]